The dollar was barely moved on Thursday against the euro or yen as activity wound down ahead of a long Easter weekend and traders trimmed positions ahead of a barrage of US economic data due next week.
Data on Thursday showing a rebound in US retail sales in March and a modest improvement in April consumer sentiment provided some support to the dollar, and helped push benchmark US Treasury yields above 5 percent for the first time in nearly four years.
But the dollar was trapped in tight ranges, with many traders reluctant to move ahead of a series of potentially market moving events next week, which include Chinese President Hu Jintao's first official visit to the United States.
"It's pretty hazardous trying to predict what might happen next week, with the possible implications for the yuan and Asian currencies from Hu's visit, to the big slate of US indicators due as well," said Richard Franulovich, senior currency strategist at Westpac in New York.
The euro was flat against the dollar at $1.2113. The dollar was little moved as well against the yen at 118.45 yen.
The dollar dipped slightly against sterling and the Swiss franc, but rose against the Canadian and Australian dollars.
Currency investors next week will also be taking a look at February US capital flows data on Monday, and US inflation and housing figures later in the week. Hu will visit Washington on Thursday.
Financial markets are closed on Friday. Major currencies have been trapped in tight ranges for the last four trading sessions.
"Basically, the market has gone into a rangebound pattern during this Easter week," said Brian Dolan, director of FX research at Gain Capital in Bedminster, New Jersey.
"I'm sitting here and scratching my head trying to find trading opportunities, but the market is just so neutral."
Citigroup analysts on Thursday pointed out that the euro's net move since opening last week at $1.2115 has been a negligible $0.0002.
Data on Thursday showed that retail sales rose 0.6 percent last month, although February's sales were revised up.
Separately, the University of Michigan's survey showed its preliminary index of consumer sentiment in April came in slightly above forecasts.
All up, that helped reinforce expectations that the Fed will press on with its credit tightening campaign with another quarter point rate rise in May, lifting benchmark rates to 5 percent.
Futures markets are now pricing in a 60 percent chance of another hike in June. Fed governor Donald Kohn said on Thursday that the Fed was aware it risks overshooting on monetary policy tightening, given the lag between rate hikes and their impact on the economy. The Fed will release minutes from its March 28 meeting on Tuesday.
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